The Libyan Stock Market has signed a multi-faceted memorandum of understanding (MoU) with global Shariah advisory firm, Amanie Advisors, to help Libya’s efforts to expand the role of Islamic finance in its economy.
The comprehensive MoU sets out “a clear roadmap” for research into the areas of growth for Islamic Finance within Libya; Islamic Finance training; and a joint agreement on conducting market research that aims to devise the proper development model for Islamic Finance with Libya.
Amanie said that with continued, year-on-year growth in the global market for Sukuk, Libyan institutions will be able to issue these popular instruments to international investors within a regulatory framework that meets global best-practice standards in terms of its adherence to Shariah standards. In 2012 there were US$140bn of Islamic sukuk issued globally and new issuance is estimated to be between US$180-200bn in 2013.
Amanie will also provide Shariah consultancy services to the relevant authority with respect to drafting relevant guidelines and regulations for their major Islamic capital markets initiative. These services will also be available to multiple government departments involved in financial regulation.
“Libya is a country of great financial potential and a strong desire to abide by the principles of Islamic finance,” said Ibrahim Zahaf, chief executive officer (CEO) of Amanie’s North African business, “Working together with the Libyan authority, we are eager to begin this important work.”
With training a key challenge for Islamic banks, Amanie will provide in-depth guidance and training to the relevant agencies within Libya, both through work-shops and via the distribution of their joint-venture training courses offered in association with the UK-based Chartered Institute of Management Accountants (CIMA) of both Diploma of Islamic Finance and Advanced Diploma of Islamic Finance
“This is an important step for our firm to work closely with the new stakeholders in Libya on so many vital areas related to establishing a vibrant Islamic capital market,” said Dr Mohd Daud Bakar, Amanie’s founder and group chairman. “There is much to be done, but we are confident the whole country and larger region will benefit from our joint efforts.”